Paytm stock hits record low. Can it fall any further?

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Shares of Paytm parent One 97 Communications continued to decline for the third straight session on Wednesday and hit a one-year low. The stock fell 7.70 per cent to hit a record low of Rs 440.35, but no near-term respite is likely for the stock. The technical charts paint a grim outlook, with analysts suggesting targets of Rs 350 and even Rs 300.

A total of 17.16 lakh shares were traded on Wednesday, generating a turnover of Rs 80.02 crore. The market capitalization (m-cap) of the company stood at Rs 29,361.31 crore, down Rs 90,000 crore from its peak value of around Rs 1.2 lakh crore.

Ravi Singhal, CEO, GCL Securities said, “Investors should wait. The stock will take time to reach the bottom. It may test Rs 350 level after some consolidation. Accumulation near these levels is possible in the long term.” Is.”

Manoj Kumar Dalmiya, Founder & Director, Proficient Equities Pvt Ltd said, “Paytm shares are looking weak on weekly time frame and may continue to slide towards Rs 292 levels. Investors may avoid buying this stock for now as they are facing There could be further damage.” Harm.”

Paytm finally closed at Rs 452.20, down 5.20 per cent today. The stock has lost about 28 per cent in the last one month. It has declined by 66 per cent on a year-on-year (YTD) basis.

Share India Vice-President and Research Head Ravi Singh said, “Paytm share price may continue to witness selling pressure amid continued dumping of shareholding by large funds. This selling pressure from pre-IPO investors may not stop soon.” “

The stock was down 11 per cent in the previous session after analysts at Macquarie suggested that Jio Financial Services could pose “significant risks” to the digital payments firm. Reliance Industries (RIL) recently announced that it will demerge its financial services business and rename it as Jio Financial Services (ZFS).

Read also: Paytm, Bajaj Finance and Reliance’s next disruption: What Macquarie said on Jio juggernaut

Macquarie said Jio Financial Services has clarified that it plans to launch a consumer and merchant lending business based on proprietary data analytics to supplement and complement traditional credit bureau-based underwriting. Macquarie said the focus seems to be on consumer and merchant lending, which is the mainstay of NBFCs like Bajaj Finance and fintech companies like Paytm.

In its report, Macquarie Capital Securities (India) Pvt Ltd said, “NBFCs (Non-Banking Financial Services)/Fintechs, Bajaj Finance and Paytm may be most at risk.” In contrast to the heavy hit in Paytm stock, Bajaj Finance traded higher in today’s deals.

Paytm had made a sluggish debut on the exchanges in November last year. Since then, the shares have mostly registered losses.

At Wednesday’s low, the stock was down 79.52 per cent from its IPO issue price of Rs 2,150.

Read also: Big jump in Paytm, Nykaa, Delhivery, Zomato shares! here’s the story so far

Meanwhile, Indian equity benchmarks traded higher for the second straight session today led by gains in state-owned lenders.

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